IDEAS home Printed from https://ideas.repec.org/a/apb/jabsss/2020p69-77.html
   My bibliography  Save this article

Innovation and evolution of business models in chemical industry

Author

Listed:
  • Wen-Hong Chiu

    (Department of Business Administration, Asia University, Taichung, Taiwan)

  • Yuan-Shen Shih

    (Department of Business Administration, Asia University, Taichung, Taiwan)

Abstract

With the advent of meager profit age in globalized economy, demographic dividends have disappeared along with rising energy costs. As such, traditional chemical enterprises are impacted by technological and digital innovation. Besides, increasing competitive pressure has led many enterprises to shift their production to focus onto low-cost areas. Therefore, it is critical if enterprises can continue to survive with sustainable developments by improving business profits. To this end, this study has explored the business model development of a chemical company. The business model comprises of customer value proposition, key resources, key processes and profit model. The study aims to appreciate the business model development, strategic choice, and future trend of the case from the initial stage, innovation stage, and to expansion stage. As found in the study, the case that triggers the development of its business models has placed emphasis on the key resources and key processes in the initial stage. In the innovation stage, the case that emphasizes profit orientation has created and upheld high profits as well as rapid growth and innovation. Finally, the case that stresses customer value proposition has strived towards the goal of factory integration and profit sharing in the expansion stage.

Suggested Citation

  • Wen-Hong Chiu & Yuan-Shen Shih, 2020. "Innovation and evolution of business models in chemical industry," Journal of Administrative and Business Studies, Professor Dr. Usman Raja, vol. 6(2), pages 69-77.
  • Handle: RePEc:apb:jabsss:2020:p:69-77
    DOI: 10.20474/jabs-6.2.4
    as

    Download full text from publisher

    File URL: https://tafpublications.com/platform/Articles/full-jabs6.2.4.php
    Download Restriction: no

    File URL: https://tafpublications.com/gip_content/paper/Jabs-6.2.4.pdf
    Download Restriction: no

    File URL: https://libkey.io/10.20474/jabs-6.2.4?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Chintha Sam Sundar & Fatma Nasser Said Al Harthi, 2015. "Impact of Capital Structure on Firm’s Profitability with Reference to Companies Listed on MSM (Muscat Securities Market)," International Journal of Business and Administrative Studies, Professor Dr. Bahaudin G. Mujtaba, vol. 1(1), pages 23-28.
    2. Gerard George & Adam J. Bock, 2011. "The Business Model in Practice and its Implications for Entrepreneurship Research," Entrepreneurship Theory and Practice, , vol. 35(1), pages 83-111, January.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Snihur, Yuliya & Lamine, Wadid & Wright, Mike, 2021. "Educating engineers to develop new business models: Exploiting entrepreneurial opportunities in technology-based firms," Technological Forecasting and Social Change, Elsevier, vol. 164(C).
    2. Mingfeng Tang & Grace Sheila Walsh & Cuiwen Li & Angathevar Baskaran, 2021. "Exploring technology business incubators and their business incubation models: case studies from China," The Journal of Technology Transfer, Springer, vol. 46(1), pages 90-116, February.
    3. Paola Castellani & Chiara Rossato & Elena Giaretta & Raffaela Davide, 2021. "Tacit knowledge sharing in knowledge-intensive firms: the perceptions of team members and team leaders," Review of Managerial Science, Springer, vol. 15(1), pages 125-155, January.
    4. Sarel Gronum & John Steen & Martie-Louise Verreynne, 2016. "Business model design and innovation: Unlocking the performance benefits of innovation," Australian Journal of Management, Australian School of Business, vol. 41(3), pages 585-605, August.
    5. Albøge, Kristian Groth & Andersen, Jesper Gyldenlev & Lueg, Rainer & Nielsen, Kristian Posselt, 2015. "A framework for business model development in technology-driven start-ups," Die Unternehmung - Swiss Journal of Business Research and Practice, Nomos Verlagsgesellschaft mbH & Co. KG, vol. 69(1), pages 67-80.
    6. Matthias Filser & Sascha Kraus & Matthias Breier & Ioanna Nenova & Kaisu Puumalainen, 2021. "Business model innovation: Identifying foundations and trajectories," Business Strategy and the Environment, Wiley Blackwell, vol. 30(2), pages 891-907, February.
    7. Diego Campagnolo & Martina Gianecchini & Luigi Mosca, 2024. "Configurations of business model themes and strategies in small firms: a qualitative comparative analysis," Journal of Management & Governance, Springer;Accademia Italiana di Economia Aziendale (AIDEA), vol. 28(3), pages 1-29, September.
    8. Nguyen, Bach & Tran, Hai-Anh & Stephan, Ute & Van, Ha Nguyen & Anh, Pham Thi Hoang, 2024. "“I can't get it out of my mind” - Why, how, and when crisis rumination leads entrepreneurs to act and pivot during crises," Journal of Business Venturing, Elsevier, vol. 39(4).
    9. Edelman, Linda F. & Manolova, Tatiana S. & Brush, Candida G. & Chow, Clifton M., 2021. "Signal configurations: Exploring set-theoretic relationships in angel investing," Journal of Business Venturing, Elsevier, vol. 36(2).
    10. Qingfeng Tian & Shuo Zhang & Huimin Yu & Guangming Cao, 2019. "Exploring the Factors Influencing Business Model Innovation Using Grounded Theory: The Case of a Chinese High-End Equipment Manufacturer," Sustainability, MDPI, vol. 11(5), pages 1-16, March.
    11. Baoliang Hu & Wei Huang & Shuai Yan & Guang Liu & Tao Zhang, 2020. "Business Model Design and Customer Loyalty: The Mediating Role of Customer Citizenship Behavior," Sustainability, MDPI, vol. 12(17), pages 1-14, August.
    12. Laudien, Sven M. & Manuel Guaita Martínez, José & María Martín Martín, José, 2023. "Business models based on sharing fashion and accessories: Qualitative-empirical insights into a new type of sharing economy business models," Journal of Business Research, Elsevier, vol. 157(C).
    13. Bhatti, Sabeen Hussain & Santoro, Gabriele & Khan, Jabran & Rizzato, Fabio, 2021. "Antecedents and consequences of business model innovation in the IT industry," Journal of Business Research, Elsevier, vol. 123(C), pages 389-400.
    14. Amandine Maus & Sylvie Sammut, 2018. "Business model innovation in incubators: the role played by dynamic capabilities theory," Post-Print hal-02466175, HAL.
    15. Meena Madhavan & Mohammed Ali Sharafuddin & Thanapong Chaichana, 2022. "Impact of Business Model Innovation on Sustainable Performance of Processed Marine Food Product SMEs in Thailand—A PLS-SEM Approach," Sustainability, MDPI, vol. 14(15), pages 1-33, August.
    16. Sebastian Schroedel, 2023. "The Sustainable Business Model Database: 92 Patterns That Enable Sustainability in Business Model Innovation," Sustainability, MDPI, vol. 15(10), pages 1-27, May.
    17. Coskun-Setirek, Abide & Tanrikulu, Zuhal, 2021. "Digital innovations-driven business model regeneration: A process model," Technology in Society, Elsevier, vol. 64(C).
    18. Thorsten Schoormann & Maren Stadtländer & Ralf Knackstedt, 2022. "Designing business model development tools for sustainability—a design science study," Electronic Markets, Springer;IIM University of St. Gallen, vol. 32(2), pages 645-667, June.
    19. Gerard George & Rekha Rao-Nicholson & Christopher Corbishley & Rahul Bansal, 2015. "Institutional entrepreneurship, governance, and poverty: Insights from emergency medical response servicesin India," Asia Pacific Journal of Management, Springer, vol. 32(1), pages 39-65, March.
    20. Keane, Seán F. & Cormican, Kathryn T. & Sheahan, Jerome N., 2018. "Comparing how entrepreneurs and managers represent the elements of the business model canvas," Journal of Business Venturing Insights, Elsevier, vol. 9(C), pages 65-74.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:apb:jabsss:2020:p:69-77. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Professor Dr. Usman Raja (email available below). General contact details of provider: https://tafpublications.com/platform/published_papers/9 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.